Quality4.0 in services: how absorptive capacity shapes sustainable performance

Purpose Sustainable performance (SP) of the organization is a fundamental framework for assessing current practices and proposing future targets. The purpose of this paper is to investigate the advancement of theory and practice at the intersection of absorptive capacity (AC), organizational information processing, dynamic capabilities and Quality 4.0 by examining how digital quality management practices, data-driven culture (DDC) and sustainability routines interact in service settings of a developing economy. Design/methodology/approach Data was collected by using a structured questionnaire from 179 listed service companies of the Pakistan Stock Exchange. Partial least squares structural equation modeling was used to analyze data. Findings The results show that Quality4.0 (Q4.0) and DDC significantly influence SP. Moreover, the relationship is partially mediated through cultural orientation toward data-driven practices, and absorptive capacity weakly moderates the association of DDC and SP. Research limitations/implications This research work has some limitations. Cross-sectional data were collected in the current research. Furthermore, the current study has been conducted in Pakistan's Stock Exchange-registered service sector organizations. While its results provide some support for the universality of the Q4.0 and SP relationship, a general claim cannot be made without testing these relationships in other cultures. Practical implications The findings of this study suggest that enhancing SP from Quality4.0 implementation requires more than just investing in digital technologies; it demands building the organizational capabilities that allow for generating real value of services. Absorptive capacity should be a priority to strengthen, as it equips the service sector not only to adopt Quality4.0 technologies but also to ensure that data-driven practices effectively translate into improved service quality and SP. Managers need to foster a DDC that implements information use in everyday decision-making, turning digital initiatives into lasting sustainability routines. Social implications The study also shows that perception and grasping digital opportunities will not deliver their full benefits unless organizations can reconfigure procedures rapidly, which depends on the interplay between cultural and learning capabilities. Finally, the evidence from a developing-economy service sector emphasizes that interaction between technology, culture and AC is critical where resources are constrained, meaning managers must treat them as collectively reinforcing investments rather than isolated initiatives. Originality/value The study is unique in providing empirical pieces of evidence of the impacts of Q4.0 implementation on SP through the mediating role of DDC in the service sector of developing economies.